By Mahnaz Abdi

South Pars daily output hits 725 mcm, fueling Iran's path to energy self-sufficiency

January 18, 2026 - 13:38

TEHRAN – Iran’s colossal South Pars gas field has achieved a landmark daily production rate of 725 million cubic meters (mcm), announced Oil Minister Mohsen Paknejad. This milestone underscores a major operational triumph for Iran’s energy sector amid significant external constraints.

Minister Paknejad attributed this success directly to the specialized expertise, unwavering commitment, and relentless efforts of the national oil and gas workforce. He further emphasized the strategic priority of maximizing production from shared hydrocarbon reserves, a policy critical to defending Iran’s sovereign resources and economic interests in a competitive regional environment.

A geostrategic colossus

South Pars is the undeniable centerpiece of Iran’s energy architecture, representing an asset of immense geopolitical and economic value. It constitutes the Iranian segment of the world’s largest natural gas reservoir, a structure it shares with Qatar—where it is known as the North Field. This single geological formation holds unparalleled reserves, with the South Pars portion alone accounting for approximately 40percent of Iran’s total natural gas wealth. In addition to gas, the field yields substantial volumes of high-value condensate, a type of ultra-light crude oil, further amplifying its economic importance.

The development of South Pars is a feat of modern engineering, structured into 28 progressively complex phases. Each phase represents a multi-billion-dollar mega-project involving the deployment of sophisticated offshore drilling platforms, extensive networks of subsea pipelines, and massive onshore gas processing and refining facilities. The heart of this activity is the Pars Special Economic Energy Zone (PSEEZ) in Asaluyeh, a coastal industrial hub transformed into a global energy epicenter. The field’s multifaceted output is the lifeblood of the national economy: it supplies the bulk of Iran’s domestic gas for power generation, residential heating, and industrial fuel; provides vital feedstock for the country’s expansive petrochemical corridor; and generates condensate for export, earning crucial foreign currency.

"Resistance Economy" in action

Achieving this milestone is particularly notable given the context of prolonged international sanctions, which have severely restricted Iran’s access to foreign technology, advanced equipment, and international finance. In response, Iran has aggressively pursued a national strategy of industrial indigenization, operationalized under the banner of its "Resistance Economy" policy. This doctrine prioritizes self-sufficiency and resilience against external pressure.

A cornerstone of this approach has been the systematic delegation of South Pars development to domestic champions. Through mandated participation, leading Iranian firms such as Petropars, the Iranian Offshore Engineering and Construction Company (IOEC), and the Oil Industries Engineering and Construction (OIEC) Group have transitioned from subcontractors to primary EPC (Engineering, Procurement, and Construction) contractors. This shift has catalyzed a domestic industrial boom, fostering local manufacturing of critical infrastructure—from the massive steel jackets for offshore platforms and intricate pressure vessels to subsea pipelines and advanced control systems.

Complementing this industrial push has been a dedicated effort to internalize knowledge and project management capabilities. The state-owned Pars Oil and Gas Company (POGC), the field’s chief developer, has methodically built in-house expertise to act as a fully capable client and supervisor, reducing reliance on foreign technical oversight. Concurrent research and development initiatives have focused on reverse-engineering, adapting, and innovating technologies suited to local conditions and limitations.

A model of industrial sovereignty

The tangible results of this decades-long strategy are vividly demonstrated in the supply chain achievements of the South Pars Gas Complex (SPGC), the operational backbone of the field’s onshore processing. According to Saeed Heydari, SPGC’s commercial director, over 90 percent of the equipment and materials used in its giant refineries are now sourced domestically. This represents a transformative leap toward industrial independence.

Heydari elaborated that more than 15,000 specialized items and process components have been successfully localized. This mass indigenization has yielded dual benefits: enhanced quality control through direct oversight and significant reductions in operational and maintenance costs. A key tactic in this technological leapfrogging has been strategic collaboration with knowledge-based companies and first-time domestic manufacturers, fostering an innovative ecosystem within Iran.

Critical, high-wear items such as specialized filters, seals, and auxiliary parts, once entirely imported, are now produced locally with proven reliability. The SPGC’s long-term roadmap aims to further increase this domestic share, systematically replacing remaining imported niches. This creates a reinforcing cycle of homegrown, sustainable development within the energy sector.

Broader implications and future trajectory

Heydari emphasized that these advancements extend far beyond import substitution. They are actively strengthening Iran’s entire domestic industrial ecosystem, creating high-skilled jobs, and empowering a knowledge-based economy. The progress at South Pars serves as a foundational model for other sectors within the country.

The record 725 mcm production figure is therefore more than a numerical achievement; it is a powerful symbol of resilient national enterprise. It proves that Iran can sustain and even advance its most strategic industrial projects under severe external pressure. As the South Pars Gas Complex continues its march toward near-total self-sufficiency, it reinforces the resilience and technical capability of Iran’s entire gas industry. This fortified sector is poised to remain the primary engine for domestic energy security, industrial growth, and a critical source of export revenue for the foreseeable future, solidifying Iran’s position as a global energy powerhouse on its own terms.

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